The Onion once joked, “New Starbucks Opens In Rest Room Of Existing Starbucks,” and it seemed like you couldn’t walk down a city street without seeing that familiar logo. Now the chain is pulling back dramatically.
Starbucks has closed roughly 400 stores nationwide that are concentrated in large metro areas as part of CEO Brian Niccol’s $1 billion restructuring plan. The coffee chain has shut down 42 locations in New York. It also closed more than 20 locations in Los Angeles, 15 in Chicago, seven in San Francisco, and six in Minneapolis.
Niccol, hired last year from Chipotle, is abandoning the city saturation strategy that backfired amid competition from niche coffee shops, remote work, and rising costs. The company is shifting focus to suburban drive-throughs where rent and labor are cheaper.
Read more